1 Unstoppable Artificial Intelligence (AI) Stock to Buy Before It Soars Into the $4 Trillion Club

Core Insights - The $4 trillion club is not yet established, but Microsoft, Nvidia, and Apple are potential candidates, with Microsoft being the closest due to its Azure cloud platform growth [1][2] - Microsoft has the greatest potential to not only join the $4 trillion club but also maintain its position due to its strong business fundamentals [2] Microsoft and AI Integration - Microsoft has invested approximately $14 billion in OpenAI since 2019, leading to the development of the Copilot virtual assistant integrated into major software products [4] - The Copilot feature is available for Microsoft 365 subscribers, with over 400 million licenses eligible for the upgrade, indicating a significant future revenue source [5] - The number of organizations using Copilot for 365 has tripled year-over-year, showcasing strong demand and customer engagement [6] Azure Growth and Revenue - Azure revenue grew by 33% year-over-year, with Azure AI contributing 16 percentage points to this growth, highlighting its importance [10] - Microsoft is expanding its infrastructure and has a backlog of $315 billion in orders for computing capacity, indicating strong demand for Azure services [12] - The company allocated $21.4 billion to capital expenditures in Q3, primarily for data center infrastructure, with plans to exceed $80 billion for the fiscal year [13] Valuation and Earnings Potential - Microsoft is currently valued at $3.2 trillion, with a P/E ratio of 33.6, which is in line with its historical average [7][15] - To reach a $4 trillion valuation, Microsoft needs to grow its EPS by 23.5%, which is feasible given its historical growth rate of 16.2% [17] - Wall Street estimates a 12.8% increase in earnings for fiscal 2026, suggesting that a $4 trillion valuation could be achievable in about two years [18][19]